Affordable Ways to Update Your Kids’ Wardrobe

It seems like a regular weekday morning. You wake your kids, lay out their clothes and get their breakfast started. Everything is going along as planned when you hear those dreaded words. “Mom, these pants don’t fit me,” or “My shoes are pinching my feet.” You find yourself asking how the clothes that fit two days ago just won’t give another inch today.

Most moms on a budget get as much wear as they can out of their kids clothes. If the pants start getting shorter or tighter, you look at the calendar to see how long your kid may be able to get by until the season changes. Here are some ideas for updating the wardrobe when your kid is ready but your budget may not be.

Consignment

There are two major benefits to consignment shops for kids clothes. You can find high quality, brand named clothing at extremely cheap prices, and you can sell the clothes your children have grown out of at the same time. At many consignment shops, you’ll actually get more for the clothes you are selling if you opt for store credit instead of cash. These places sell like-new clothing. Chances are your kids (or anybody else) won’t know the difference. Here are some links for consignment shops and sales in the Dallas area:

  

Kid to Kid (multiple cities in Dallas area)

Sister’s Closet (Lake Highlands)

Cutie Patootie Resale for Kids (Frisco)

Once Upon a Child (multiple cities in the Dallas area)

Kids Consignment Sales (lists multiple seasonal sales in various cities)

Ebay and garage sales are two other options that can yield fabulous savings on new and gently used kids clothes.

E-mail Savings

Signing up to receive e-mails from your favorite kids clothing stores is an ideal way to get secret sale codes and special coupons for VIP customers only. Stack those savings onto already reduced prices whenever possible. Old Navy, Kohls, Crazy8.com and Children’s Place are just a few of the many places where you can use coupons on sale merchandise. Stores like Ross, TJ Maxx and Marshalls sell brand new, brand named clothing at discount prices.

There’s also a special website called shopittome.com. Sign up on this sight by plugging in the exact criteria you’re looking for (i.e. boys clothes, size 7). Sometimes you can even choose specific stores. When there’s a sale that matches your criteria, you’ll receive an e-mail with pictures of specific items that specific stores have on sale.

Clothing Swap

Organize a clothing swap at your house. Invite other moms of all age kids to your home, ask them to bring seasonal clothing in a variety of sizes and let the swapping begin. It’s similar to a cookie exchange or book swap. You’re just adapting the idea for your own needs.

Kids grow out of their clothing so fast that it almost seems like a crime to spend a lot of money on new ones. With these tips, you shouldn’t have to.

Prescriptions Drugs You Can Afford

Prescriptions are rarely optional. But, when there’s limited money in the budget, people often have to choose between their medications and other life necessities. Today, pharmacies are making it easier and more affordable to get the medications you need with as little cost as possible. See the grid below for major pharmacies in the D/FW area and the affordable deals they offer, especially if you don’t have health insurance. Each program has different requirements, so check with the individual pharmacies for more details.

There are also two websites that can help you get free or discounted medicines based on your individual situation. Check out Access2wellness and Partnership for Prescription Assistance for  the assistance program that’s best for you.

Store	30-day prescription	90-day prescription	Other details
Albertsons	$4.99	$10.99	$10 one-time fee includes all family members + pets
Brookshires	$3.99	$9.99	60-days: $6.99
CVS Pharmacy	N/A	$9.99	$10 annual fee per person
Kroger	$4	$10	No annual fees
Sams Club	$4	$10	Membership not required for Rx
Target	$4	$10	No annual fees
Tom Thumb	$4	N/A	No annual fees
Walgreens	N/A	$12	Annual fee: $20 per person Or $35 for entire family
Walmart	$4	$10	Also $4 for some over the counter medicines

Start Planning Summer Travel NOW!

Spring blossomed later than normal here in Dallas/Fort Worth, and summer is about to catch us off guard. With less then two months of school left, it’s already time to start pricing airfare and booking summer vacations. Here are some great websites a little off the beaten path to help you plan your trip at a price you can actually afford.

Bestfares.com is a local travel site where you can truly find cheap, cheap deals on airfare, cruises and vacation packages. If your schedule is flexible, try the last minute deals tab for extra savings. You can also watch Tom Parsons on WFAA Channel 8 during the noon hour every Tuesday for dirt cheap travel deals that may not even make it to his website. In fact, viewers sometimes have to call a special number to get the advertised deals, so set that DVR for Tuesdays from noon to 1 p.m. so you don’t miss his very brief segment.

Set your destination and departure information on Airfarewatchdog.com, and every time you come to the site, you’ll see deals to and from those destinations right on the home page. You can also set up e-mail alerts with your ideal price on airfare to specific destinations. If prices get within that range, you’ll be alerted immediately. This is also a good site for general travel information.

Cfares.com searches hundreds of travel websites at one time for whatever deal you’re looking for, but actually links you back to the airline, hotel, etc. to book your reservation. You can also purchase a membership for $5.95 a month and get lower than advertised prices on many different destinations. The membership can be cancelled at any time with a three month minimum. Cfares truly finds deals that are much more affordable than the more popular online travel sites.

If Orland, Florida is your destination for a Disney World vacation, there are two sites that should become your Disney Bibles as soon as you know you’re going. AllEars.net contains everything you need to know to schedule your trip including immense feedback from frequent Disney travelers. Sign up for e-mails, and you’ll regularly receive top notch deals from All Ears and its Disney partners. Touringplans.com knows exactly how many people visit each park every day and has scientific formulas that will help you spend less time on line and more time enjoying your vacation. Find out which rides to ride first, when to get fast passes and more.

Don’t wait to book your travel plans. Strike now while the deals are hot and book a vacation that will have others wondering how you can afford it.

Commonly Missed Tax Deductions/Credits

Tax day is next week. If you’re one of the millions of Americans who hasn’t filed yet, you may be in luck. We have compiled a list of tax credits and deductions that often get overlooked until it’s too late. These are general guidelines, so be sure to check with a tax professional or the IRS website before taking advantage of these.

Charity
Charity comes in many shapes and sizes. If you’ve made a donation on behalf of your friend who walked for breast cancer or the neighborhood kid who jump roped for heart disease, all of those donations are deductible. So are purchases that you donate, like food for the homeless, care packages for soldiers, school supplies for needy children, etc. You can also deduct used clothes and other household items that you donate throughout the year, as well as tithing to your church. You should have receipts for all of your donations.

Child Care
If you pay for your child to be in someone else’s care because you have to work, you’re entitled to a tax credit. This is not just day care. In home babysitters and Mother’s Day Out programs also count as child care, as long as you work at least part time.

Health premiums
Many people overlook this, because health expenses must equal at least 7.5 percent of your income to count as a deduction. If you or your spouse pay so much per paycheck for employer sponsored health insurance, every dime you pay counts toward that percentage. So do prescriptions, doctor visits, etc. Your mileage to and from the doctor and pharmacy can also be deducted.

Loan Interest
Points paid on mortgage loans and refinanced mortgages can be quite valuable at tax time. If you have a home equity loan, the interest you pay may also be tax deductible.

Energy Saving Appliances
The government is allowing tax credits for certain energy-saving appliances. If you replaced a water heater, air conditioner or other home appliance in 2009, check this website to see if you qualify.

Sales-tax deduction for new vehicles
If you bought a new car, truck, motorcycle or motor home after February 16, 2009, and before the end of the year, you can deduct the sales tax paid up to a certain amount. If you bought a hybrid, you can also deduct a certain amount of the purchase price.

Contribute to an IRA
You have until April 15, 2010 to contribute to an IRA to get credit for tax year 2009. Depending on your income and how much you contribute, it could take several hundred dollars off your tax bill. If you don’t have an IRA, you can open one and make a contribution before April 15^th to get the credit.

These are all legal ways to reduce your tax burden. It’s in your best interest to take advantage of as many as possible. Good luck and happy tax filing.

Teach Your Kids About Money Now!

Teaching your kids how to save and spend is one of the most important lessons they will ever learn, and it’s important to start early. Today’s teenagers collectively spend billions of dollars a year, and a third of high school students already have at least one credit card. Without the proper foundation, your kids may join the roughly 20 percent of college students already filing for bankruptcy because of overwhelming credit card debt.

So, what money skills do you teach at what age? Each child is different, but here are some guidelines that may help.

Pre-School

By about age three, you can start with counting. Start by letting them count five or 10 pennies while dropping them into a jar. Keep adding to the jar every few days or once a week and let them watch the savings grow. As the jar starts to get full, take them to a store to pick out a very cheap toy. Remove the amount of pennies it takes to pay for the toy, and show them how much more empty the jar is because they spent the money. As they get to Kindergarten age, use the pennies to help them understand the value of different coins. For example, take out 10 pennies and put them next to a dime to help them understand how many pennies it takes to equal that dime.

Grade School
This is a good time to start helping them understand the concept of earning money. Choose odd jobs around the house like feeding the dog or emptying the dishwasher and pay them a small allowance. Make them buy some of their own toys with the money they earn so they truly understand how much they have to work to earn the things they want. Teach them how to shop around to get a better price.

Middle School
Help them open a youth account with a checking account, savings account and debit card. Be sure they understand the difference between a debit card and a credit card, and teach them how to balance their account as they deposit and withdraw money. This is also a good time to start teaching them how to make a budget.

High School
Now is the time to teach them about interest rates, loans and credit cards. By the time they graduate, they should be prepared to spend and save responsibly.

It’s also important to have good money habits yourself. Kids look to their parents for money advice more than any other grown-up. If you aren’t practicing what you preach, you may be sabotaging your own efforts to raise them differently.

Debt Snowball – The Proven Way to End Credit Card Debt For Good

Is credit card debt overwhelming you? You’re not alone. According to creditcards.com, the average credit card debt in American households is $16,007. If they’re only making the minimum payments on those cards, there’s a good chance they’ll pay off their 30-year mortgage before they pay off their credit cards.

Here’s the good news. There is a proven technique to pay off your debt in considerably less time. Financial guru Dave Ramsey calls this the Debt Snowball, and here’s how it works.

First, stop using your credit cards. If you continue to accrue debt, the snowball will not work.

Next, pick the credit card with the lowest balance and focus on that one first. Pay as much as you can on that card, and make the minimum payment on all of your other credit cards until that one is paid off.

When the first card is paid in full, move to card with the next lowest balance. Take the money you were paying on the first card and add it to the minimum monthly payment on this next card.

Example:

You pay $100 on Card A – the credit card on which you owe the least amount of money.

You make the minimum payment of $15 on Card B, which has the second lowest balance.

When Card A gets paid off, take your $100 and apply it to card B, in addition to the $15 you’re already paying. Your new payment on Card B becomes $115.

When Card B is paid in full, apply that $115 to the card with the next lowest balance, in addition to your minimum monthly payment. In essence, it’s like building a huge snowball. You start with a handful of snow, and as you continue rolling it on the ground, you’re adding more snow to it to make a bigger snow ball. With your debt, you’re adding more money to your monthly payment with each card until your debt is completely gone and you’ve built a huge surplus.

This method really works. People with $100,000 or more in debt have followed this approach to become debt free in a matter of a few years. But, you have to be committed to the process.

It’s a little bit like losing weight. You start slow, and as you start meeting your goals, you add momentum. If you stop eating right and exercising the first time your clothes feel more comfortable, you’ll never make it to your ultimate weight loss goal. Just the same, if you stop adding money to your monthly payments when your budget gets some wiggle room, you’ll never finish paying off those big balances.

If you’re ready to be debt free, let it snow, let it snow, let it snow!

Press Debit or Credit – What’s the Difference?

You’re at the pump ready to gas up. You swipe your Visa Check Card and the machine prompts you to select credit or debit. Or, perhaps you’ve been prompted at the grocery to let your cashier know whether you’re paying with a credit card or a debit card. Why does it matter and what happens if you press the wrong one?

There really isn’t a right or wrong answer, but what you press does determine how your payment is processed. Debit means your payment will be processed like an ATM card. If you press debit, you will have to use your personal identification number (PIN) to complete the transaction. That purchase will be deducted from your checking account immediately, just as if you are using your card at an ATM machine. If you want cash back, debit is the only way you can get it.

If you press credit, your payment is processed through the VISA network. The payment will be deducted from your checking account, but it will take a day or more for that to happen. You cannot get cash back when your transaction is processed as a credit transaction.

Pressing credit will not turn your Visa Check Card into a credit card that accrues interest, so be sure you have enough money in your checking account to cover your purchase. Otherwise, your purchase will be declined.

So, why do these cards come with a “credit” option if they are not credit cards? It’s for member convenience. Fewer merchants are accepting checks these days, and aside from grocery stores or gas stations, most merchants can’t process ATM transactions. The VISA Check Card enables you to use your checking account to make purchases without having to write a check. It also keeps you from having to carry a separate ATM card for those times when you need cash.

Next time you’re confronted with the question of credit or debit, you’ll know exactly which one to choose.

Affordable Ways to Feed a Crowd on a Holiday

Holidays can hard on the family budget – especially if everyone is coming to your house for dinner. Here are some ideas for feeding a crowd without going broke.

Potluck
Ask friends and family to share the wealth. Offer to provide the meat, dessert and drinks and ask your guests to bring their favorite holiday side dish. In addition to saving money, you get a wide variety of foods and you may even learn something about your guests. As the dishes get passed around the table, ask your guests why the dish they brought is their holiday favorite. Is there a tradition they can share with the group?

Plan Ahead and Shop Sales
The earlier you know you’ll be entertaining a crowd, the more cost efficient you can be. Make your menu ahead of time and start shopping weeks in advance. If there’s room in your freezer, buy a ham, turkey or roast when it goes on sale and freeze it until you’re ready to cook it. Stock up on frozen vegetables when they go on sale or even fresh produce that lasts a while like potatoes, sweet potatoes, carrots, apples, onions, etc. Buy as much as you can on sale and/or with coupons, and keep the menu reasonable. Just because people will eat 10 different side dishes doesn’t mean you have to make them all.

Food Made to Order
Many grocery stores and restaurants sell meal packages during the holidays which come complete with meat, side dishes, dessert and sometimes beverages. Super Target is currently offering three such meals which range in price from $35 to $60 and feed up to 10 people. If there’s not a Target near you, check with your local grocery store for similar deals. These can be cost-efficient solutions even if you have to buy two of them for really larger crowds. They’re also time savers, because most of the food just needs to be heated. It’s already pre-cooked. You’ll most likely need to order these kinds of meals several days in advance if not more.

Of course, if feeding a crowd just isn’t in the budget this year, ask someone else to host the holiday meal this time around. If you’re not comfortable talking about the cost factor, tell them you just need a break from the added stress of holiday preparations this year. True friends and family will understand.

Woot.com – Cost Savings Worth Cheering About

Here’s something to cheer about – brand new electronics at a discounted price. It’s not too good to be true. It’s simply Woot.com, and here’s how it works. There is only one product for sale every day. That product is made available at midnight, central time, and is available until it is either sold out or until 11:59 p.m – whichever comes first. Woot does not disclose how many it has in stock. You can buy up to three of that product, and each buyer can only order once a day.

Items for sale run the gamut. Last week, items for sale included a back pain relief system, a pedometer, a blue tooth mouse, a wi-fi robo cam, an HD player, a heart rate monitor and a Netbook with accessory kit. In the past, they’ve had mp3 players, LCD monitors, digital cameras, GPS devices and so on. Most items are brand new, but some are refurbished, and that is always disclosed. If you’re looking to buy some type of electronic device, it pays to check Woot.com daily.

Caveats
There are some caveats. On occasion, you may find the item cheaper on another website. Or, the item may not be the quality you’re hoping for. To help you shop, Woot.com offers an online forum where people can talk about their experiences with the product of the day. There’s also a blog. Earlier in March, one buyer posted that Amazon.com was selling the item of the day, brand new, for only $40 more than the refurbished one for sale on Woot. Comments like those help you make an informed decision.

Returns may not be easy or cheap, so you definitely want to do your homework before you buy. You pay shipping costs to return your item, and because they often sell out daily, there may not be a replacement item available. When that happens, you get your money back, but you don’t recoup shipping costs. If the item you purchase has malfunctioned, Woot recommends contacting the manufacturer before returning it to Woot. The manufacturer will often send a replacement model or an upgraded model at no cost to you.

More Deals
One of the best things about Woot is the links on its site for other deals. You can find all kinds of good deals by starting at woot.com. Plus, Woot has some sister sites for kid stuff, shirts, wine and sellouts. Start your journey at Woot.com. You may just find savings to cheer about.

Saving habits of ‘The Greatest Generation

How We Can Learn from Them
The people who lived during the Great Depression era may be the only generation of people in America who truly experienced what it was like to live without.  They didn’t just live without luxury items. They lived without basic necessities, because there just wasn’t enough to go around. That level of deprivations taught them some hard lessons but also made them some of the most prosperous people in the world. Here are some things we can learn from them.

Establish an Emergency Fund
These people didn’t just save money. They hoarded it, because they didn’t know when the next paycheck might come. They stashed money in coffee cans around the house, under mattresses and in old pipes, because there was no deposit insurance at the time and they didn’t trust financial institutions. Today, we know the money we deposit is safe, yet fewer people are saving any. If people who had nothing still found a way to save, we can too. The trick is to pay yourself first and then use what’s left over to pay bills and debt. Financial experts recommend that everyone have three to six months of expenses in savings. Once you have that established, put 15 percent of your income into retirement savings.

Don’t Spend What You Don’t Have
This may be the easiest change to make. If you want to buy something, wait until you have the cash for it. There was no such thing as credit cards during the Great Depression. People paid cash for everything. If they didn’t have the cash, they didn’t buy it. It’s a little more complex in our world today, which includes plastic and cyberspace. If you want to shop online, you usually need a credit or debit card to pay for it. The lesson here is don’t buy it if you don’t have the money in your checking account to pay for it.

Mortgages
According to financial guru Dave Ramsey, only 2% of homes had mortgages in 1929. By 1962 only 2% did not. Back then, people paid cash for their homes. That might be harder to do today because homes are more expensive than they used to be, but there’s still a lesson to be learned here. Don’t buy a house you can’t afford. So many people have lost their houses in the past few years because keeping up with the Jones’ was more important than keeping up with their budgets.  If you have to get a mortgage, shoot for a 15 or 20 year term at the lowest rate possible and pay more toward your principal to pay off the loan faster. Also, keep your monthly payments to lower than 30 percent of your monthly take-home pay.

A lot of this comes down to self control. Don’t buy what you can’t afford, and don’t spend everything you make. It worked for one generation. It can also work for us – if we let it.